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New Jersey Department
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For Immediate Release: |
For Further Information: |
Acting Commissioner Kobylowski Cautions Consumers on
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TRENTON – In the aftermath of an auto accident, consumers are often faced with important decisions related to insurance, medical treatment and auto repair. Unfortunately if they make a hasty or unwise decision they can end up paying unnecessary expenses or becoming the victims of fraud. “Insurance fraud costs consumers and insurance companies millions of dollars every year,” said Acting Commissioner of New Jersey’s Department of Banking and Insurance Ken Kobylowski. “But if consumers exercise caution and follow some common sense measures after an auto accident, they can avoid fraud and navigate easily through the insurance system.” Acting Commissioner Kobylowski advised consumers to take the following steps after an auto accident in order to stay clear of fraudsters.
What Constitutes Auto Fraud Insurance fraud may also include when consumers deliberately do not update their insurance company when changes occur or if they falsify information on an auto insurance application. This is illegal and can result in denial of coverage. To avoid this scenario, consumers should always fill out auto insurance applications honestly and completely. This includes but is not limited to: past accidents or tickets, eligible teenage drivers in the home and previous claims. Although answering truthfully on some of these topics may increase the policy rate, lying or omitting information is against the law and can result in an insurance company denying coverage or dropping a consumer altogether. The same results can occur even if an omission is accidental. “Always be forthcoming about your driving record to your insurance company. It is better to pay a bit more for a policy now than to be denied coverage or dropped from coverage altogether when you need it most. Consumers should be aware that getting a new policy from a different insurer once they are dropped is much harder than just changing companies, especially if they are dropped because of insurance fraud,” Acting Commissioner Kobylowski said. Insurance fraud affects everyone. Fraudulent claims cost insurance companies money and recouped losses are achieved through higher premiums and rates for all drivers. This leads to hundreds of dollars in increases for the average household and makes everyone a victim. Anyone with knowledge of insurance fraud should contact the New Jersey Office of the Insurance Fraud Prosecutor at 1-877-55-FRAUD. |
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